I have been researching some debt elimination programs where you can pay down your principal and all other debt quickly without increasing your current monthly payments.
They create a margin for you and claim to be able to get me out of debt in half the time I’m scheduled.
Does anyone have any experience with these types of programs?
Let me know,
JP
Be careful. Most are non-profit but make you give a “donation” every month. Also, it shows up on your credit report. Its not as bad as a bankruptcy, but it is visible.
From what i have heard from borrowers, they take over all the debt and negotiate with the creditors on balance and interest rate. They then jack up the min payment and help you get out of debt at lower interest rates and lower balances.
From what I understand, this program is different. They do not do this.
They create a margin in your payments and use this margin to pay down your debt while you continue to make the same payments every month until you are completely out of debt.
It is administered by a third-party keeping one honest and on the plan. You recieve a written plan and can access your account online.
It sure sounds good to me.
If interested, I could give you the web site.
JP
I have never heard or seen a good “debt elimination program” Not saying there is not one out there, but I have not seen it.
Most of them do charge a fee in some way or another. They clame that they will lower your intrest rate but I have never heard of someone having this happen.
they do show up on your credit report and lenders scrutinize this as someone that cant manage their finances.
What they do accomplish is pay your bills on time every month. So if you are unable to pay your bills ontime then go for it, but expect to pay a fee for it. Remember nothing is free.
My debt elimination program is free online bill pay from my bank scedualed to automaticly make my monthly payments. Its free, it works, and you dont have to worry about it bighting your backside
another thing debt elimination programs do is make intrest off your money. They pay your debt the last possible day, causing you more intrest if its accrued daily, and in turn their bank account is fatter for 10 or so more days, giveing thiem a nice return.
This money management can make them tons of money and loose you tons of money. How are they getting this margen or spread for the extra money they pay?
And those are just the good ones. The bad ones take your money, claim they’ve paid off those bills and then a few months later you find out they never paid the bill and they took off with your money. In the meantime, your credit gets worse and you’ve got a bunch of 1x30 or 1x60’s on your credit report and the cost of your other credit goes up. Heard of a few of those from a bunch of mortgage brokers so they’re still out there.
Remember the part about if it sounds too good to be true? I think some of those things they say they can do you can also do yourself. You can always call up the credit card company directly and ask for a lower rate. You may also have other credit cards that you aren’t using and perhaps they have a lower rate and you can transfer the balance around.
I agree with the above posters- most of these programs are scams so be careful, and even if it is legit, it is almost as bad as a bankruptcy on your credit report. It may or may not be beneficial to you and a lot of the things they do for you you can do yourself ( such as negotiating payoffs and rates with creditors).
I have a program that deals with debt elimination along with other financial issues. Credit repair, debt elimination, options investing, real estate investing training, legal service and a tex consulting /bookkeeping service. There is a fee, but is well worth it. Check out this site for info. Specifically the “Equity Trax” whis is the debt elimination plan. www.FdiRep.com/3john2 Any questions, contact me. Hope this helps! I am working on 2 properties now myself. 